Trump says concessions to Israel and continued dialog with Iran. What's in the markets?

Israel will stop its offensive on the Lebanese capital Beirut and has already deployed its troops and the Lebanese group Hezbollah has agreed to a ceasefire in the conflict with Israel. This is what US President Donald Trump wrote on the social media network Truth Social on Monday, June 1.

"I had a very productive phone conversation with Israeli Prime Minister Bibi Netanyahu: there will be no offensive on Beirut, and those soldiers who were headed there have already been turned back. Likewise, through senior representatives, I had a very good conversation with Hezbollah, and they have agreed to a ceasefire - that Israel will not attack them and they will not attack Israel," Trump wrote."

In addition, U.S. negotiations with Iran "continue at a rapid pace," Trump claims. Earlier on Monday, he wrote in Truth Social that "Iran really wants to achieve" a peace deal. But Iran's Tasnim news agency has since reported that Iran has decided to immediately halt talks with the US due to intensified Israeli fighting in Lebanon. In addition, Tehran intends to completely close off the Strait of Hormuz, through which a quarter of the world's oil and gas supplies passed before the war, Tasnim claimed. Trump responded by telling CNBC that he "doesn't care if the talks are over" and that the long dialog between Washington and Tehran "has started to get very boring."

The cost of Brent crude oil fell below $95 per barrel after Trump's posts: its growth slowed to about 4%. At the same time, during trading on Monday, the price of Brent rose above $97 per barrel and added almost 8% due to investors' concerns about the escalation in the Middle East.

US stock indices S&P 500 and Nasdaq Composite accelerated growth after Trump's publications and set new records. Dow Jones Industrial Average came out of the red zone and also updated the historical maximum. At the time of publication of this text, the broad market index S&P 500 was up 0.5%, the "technological" Nasdaq Composite was adding 0.7%, and the Dow blue-chip index was up only a paltry 0.02%. Index of small and medium capitalization companies Russell 2000 was decreasing by 0.1%.

European markets ended trading on June 1 in the negative. The pan-European index Stoxx 600 fell by 0.8%, German DAX lost 0.4%, French CAC 40 - 0.5%, and British FTSE 100 - 0.7%.

This article was AI-translated and verified by a human editor